by Ann Logue
The United States hasn’t seen significant inflation in almost 40 years. That may change soon, thanks to a massive federal deficit, pent-up demand when quarantine restrictions are released and a shift in Federal Reserve monetary policy. Last last week, Bill Dudley, the former president of the Federal Reserve Bank of New York, made waves with his column, “Five Reasons to Worry About Faster U.S. Inflation,” for Bloomberg. On Monday, however, two of the publication’s economic reporters called 2021 inflation a “mirage.”
What exactly is inflation, anyway? And do you really need to worry about it or not? Read on for more about how this not-so-complicated economic phenomenon will directly affect you in 2021.